India should drag US in WTO over tariff hike decision, say trade experts

The World Trade Organization WTO logo is seen at the entrance of the WTO headquarters in Geneva (Photo: Reuters)
India should drag the US in the World Trade Organisation's (WTO) dispute mechanism against the move to hike import duties on steel and aluminium, as the decision will impact exports and it is not in compliance with the global trade norms, experts today said.

The decision of the US would not only impact India's export of these goods to America but also affect global trade, Biswajit Dhar, a professor of economics at Jawaharlal Nehru University, said.

"Such decisions are protectionist in nature. India needs to approach the WTO against this move as it would severely hit global trade," Dhar said.

"We also have the freedom to increase tariffs. India should also retaliate as the US decision will impact exports of steel and aluminium goods. You have to take action to protect the country's interests," Pillai told PTI.

He added that raising duties by India would be within the bound rates of the WTO.

These are the rates beyond which, a WTO member can not increase taxes on a commodity.

Exporters body FIEO too said that India should file a complaint in the Geneva-based WTO as the decision of America is not in compliance with the global trade norms.

"Such decisions impact process of goods in global markets. It would dent competitiveness of goods and India should consider going to WTO's dispute body against this decision," he said.

On March 9, President Donald Trump imposed heavy tariffs on imported steel and aluminium which he said were necessary to boost the US industry suffering from "unfair" business practices, a move that has sparked fears of a global trade war.

Trump signed two proclamations that levied a 25 per cent tariff on steel and a 10 per cent tariff on aluminium imported from all countries except Canada and Mexico.